Part 2 Introduction to Candlestick Patterns

Important Trading Principles in Options
1. Don’t Buy Far OTM Options

They look cheap but rarely become profitable.
Most expire worthless due to Theta decay.

2. Focus on ATM and Slightly ITM Options

They respond better to price movement.

3. If You Are a Beginner, Avoid Selling Options

Sellers need:

high capital

strict hedging

risk management

psychological control

4. Never Trade Without a View

Options need direction OR volatility.

5. Avoid Holding to Expiry Unless Experienced

Expiry movement is very fast, risky, and unpredictable.